5709.25
Exemption of pollution control facilities.

(A)
Whenever
an exempt facility certificate is issued, the transfer of tangible personal
property to the holder of the certificate, whether such transfer takes place
before or after the issuance of the certificate, shall not be considered a
"sale" of such tangible personal property for the purpose of the sales tax, or
a "use" for the purpose of the use tax, if the tangible personal property is to
be or was a material or part to be incorporated into an exempt facility.

(B)
For the period subsequent to
the effective date of an exempt facility certificate and continuing for so long
as the certificate is in force, no exempt facility or certified portion thereof
shall be considered to be either of the following:

(1)
An improvement on the land on which the
exempt facility is located for the purpose of real property taxation;

(2)
As "used in business" for the
purpose of personal property taxation.

(1)
The tax
commissioner, upon receiving a properly completed application for an exempt
facility certificate, may allow the applicant to claim the exemption provided
by this section before the commissioner issues the certificate. The applicant
is entitled to the exemption unless the commissioner notifies the applicant
otherwise by serving notice upon the applicant in the manner prescribed by
section 5703.37 of the Revised Code.

(2)
A taxpayer whose tangible
personal property is subject to taxation under Chapter 5727. of the Revised
Code shall notify the commissioner in writing of any property the applicant
does not want the commissioner to exclude from assessment. The notice shall be
provided before the date the commissioner issues the preliminary assessment
under section
5727.23 of the Revised Code.

(1)
Notwithstanding any other time limitations imposed
by law, the commissioner may assess any additional tax or may assess any
additional taxable property, including any applicable interest, on the denied
portion of the applicant's claim for an exempt facility that the applicant
claimed prior to the exempt facility certificate being issued or the
application being denied. No assessment shall be made pursuant to this division
after one hundred eighty days from the date the commissioner mails the exempt
facility certificate or notice of the denial of the exempt facility certificate
pursuant to section
5709.22 of the Revised Code.
Nothing in this section shall prohibit an assessment that otherwise may be
timely made by law.

(2)
Assessments issued pursuant to division (D)(1) of this section shall be issued
as amended preliminary assessment certificates under section
5711.31 of the Revised Code for
personal property tax, as amended preliminary assessment certificates under
section 5727.23 of the Revised Code for
public utility tax, and as assessments under section
5733.11 of the Revised Code for
corporation franchise tax, section
5739.13 of the Revised Code for
sales tax, and section
5741.11 of the Revised Code for
use tax, and are subject to the same appeal requirements as defined in those
sections.

(3)
Nothing in division
(D) of this section allows the tax commissioner, after the expiration of the
time limitation, to issue an assessment referenced in division (D)(2) of this
section that increases any tax beyond the amount claimed by the applicant as an
exempt facility.

(4)
If an
assessment is issued for only the denied portion of the application for an
exempt facility, the only issue the applicant is permitted to raise on appeal
of the assessment referenced in division (D)(2) of this section is that of the
taxable property or transaction constituting the denied portion of the
applicant's claim for an exempt facility.

(E)
Except as otherwise provided in this division, no
exemption for additional property shall be claimed under this section after an
exempt facility certificate has been issued for that facility unless the
applicant files a new application under section
5709.21 of the Revised Code. The
tax commissioner shall waive the requirement to file a new application under
section 5709.21 of the Revised Code if the
cost of the additional property, net of retirements for similar property, does
not exceed five hundred thousand dollars during any calendar year. The fee
imposed under section
5709.212 of the Revised Code for
applications filed as a result of this division shall be five hundred dollars.

(F)
If, as the result of a
revaluation due to sale or bankruptcy or any other reason, the book value of
property that is the subject of an exempt facility certificate is changed from
the book value at the time of the original issuance of the certificate, the
amount of exemption available to the owner is limited to the percentage
resulting from the ratio of the historical cost of the property that is the
subject of the exempt facility certificate to the historic cost of all tangible
personal property and real property of the owner located at the same location
as the property subject to the exempt facility certificate. If the result of
using this ratio is greater than the original cost, then acceptable reasons for
allowing such greater cost must be established with supporting documentation in
order to qualify for the exemption above the original cost.

(G)
After two years from the date the tax
commissioner receives an application, the applicant may request in writing that
the tax commissioner take final action on the pending application. Within ten
days after receiving such a request, the tax commissioner shall issue a
proposed finding, under section
5709.22 of the Revised Code, if
the application is allowed in whole or in part. Otherwise, the tax commissioner
shall issue a final determination denying the issuance of the certificate,
which is a final determination appealable under section
5717.02 of the Revised Code.